Thailand to lower taxes for CKD EVs to reduce prices; EVs to make up 30% of total production by 2030

The Thailand government’s push for electric vehicles continues, as the country’s ministry of industry is looking to reduce the prices of EVs to bring them closer to cars with conventional internal combustion engines (ICEs). It aims to achieve this by reducing the import duty on automotive parts used to assemble EVs in Thailand, reports Bangkok Post.

For now, the official of industrial economics in the country has been assigned to conduct a feasibility study of tax reduction options. The findings obtained will then be forwarded to the National Electric Vehicle Policy Committee for further consideration later this month.

With the appropriate taxation measures in place, industry minister Suriya Jungrungreangkit expects demand to increase for EVs, which are still being sold at relatively high prices. The increased adoption of EVs will also help the country in its efforts to reduce pollution emitted by ICE-powered cars, a problem that has plagued the country’s capital city for some time.

At present, the current tax rate stands at 80% of auto part prices, with Suriya also noting that other factors being considered include increasing the number of EV models in the country and making them affordably priced for buyers – between 700,000 to 800,000 baht (RM93,300 to RM106,628). “We will then know how much tax should be cut to make EV prices equivalent to internal combustion engine cars,” he said.

Local assembly of EVs in Thailand is also another area the government is looking to expand, as it is targeting 750,000 EVs to account for 30% of total car production of 2.5 million units by 2030. This will see incentives being given to companies who invest in battery and/or EV manufacturing facilities in the country.